CFP practice questions with worked explanations

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This page
What you get
10 original teaching questions and explanations
Access
Answer below without an account
Interactive sample tool
What you get
Selected question-bank samples
Access
Open /free-practice/cfp
Printable CFP pack
What you get
20 MCQs with answers and explanations
Access
Request by email at /free-cfp

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Try 10 CFP teaching questions

Original examples with stated assumptions. This short set is not a full mock or a pass predictor. Answers stay in this page session and are not transferred to signup.

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Cash-flow planning

Question 1. A household receives $7,500 in monthly take-home income and spends $6,300, including all required debt payments. How much is available each month for additional saving or debt repayment?

$1,200$6,300$7,500$13,800

Explanation after you answer

Emergency reserves

Question 2. A client chooses a reserve target of six months of essential spending. Essential spending is $3,200 per month, and $8,000 is already reserved. How much more is needed?

$8,000$11,200$19,200$27,200

Explanation after you answer

Risk tolerance and capacity

Question 3. A client is comfortable with large investment swings but needs the entire account for a home purchase in six months. Which distinction matters most?

High willingness to take risk guarantees high capacityThe home purchase eliminates all market riskWillingness to accept risk may exceed the ability to absorb a near-term lossOnly the client's age matters

Explanation after you answer

Insurance needs

Question 4. A client's stated survivor needs total $900,000. Existing life coverage is $300,000, and $150,000 of assets are earmarked for those needs. Ignoring taxes and discounting, what additional coverage fills the gap?

$150,000$300,000$600,000$450,000

Explanation after you answer

Investment returns

Question 5. A client invests $20,000 at a hypothetical fixed annual return of 5%, compounded annually. With no cash flows, taxes, or fees, what is the value after two years?

$21,000$22,050$22,000$24,000

Explanation after you answer

Tax planning

Question 6. Assume a fully usable $1,000 tax deduction saves tax at a 24% marginal rate. Compare that with a fully usable $1,000 nonrefundable credit. What are their respective tax savings?

$240 and $1,000$1,000 and $240$240 and $240$1,000 and $1,000

Explanation after you answer

Retirement income

Question 7. A retiree plans annual spending of $58,000 and expects $34,000 of reliable annual income. Under a simplified 4% initial-withdrawal assumption, what starting portfolio supports the remaining first-year gap?

$600,000$850,000$1,450,000$96,000

Explanation after you answer

Estate planning coordination

Question 8. A client updates a will but leaves old beneficiary designations on retirement accounts. What should the planner do?

Assume the new will automatically updates every accountRemove all beneficiaries without reviewing intentReview the designations and coordinate them with the estate planIgnore beneficiary designations until retirement

Explanation after you answer

Behavioral finance

Question 9. A client refuses to sell a poorly fitting investment solely because its price is below the amount originally paid. Which bias is most directly illustrated?

Perfect diversificationRandom samplingPresent-value discountingAnchoring on the purchase price

Explanation after you answer

Planning process

Question 10. A new client asks which investment to buy before sharing financial goals, existing assets, or cash needs. What should the planner do first?

Recommend the recent best-performing fundGather relevant circumstances and clarify the client's goalsAssume the client has no debtsChoose the product with the highest commission

Explanation after you answer

Turn an answer into a useful next step

Before checking feedback, write the rule or calculation you used. A correct guess and a correct method are different evidence. After checking, explain why your chosen answer succeeds or fails under the stated assumptions.

A small sample cannot estimate your probability of passing. Use it to identify a method to learn next, such as insurance needs, tax credits or compound returns. Then practise fresh variations and eventually use a full-length resource for timing.

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Keep learning evidence separate from a pass prediction

Record the topic, the reason for uncertainty and the condition under which you attempted the item. A familiar untimed question and a new question answered under exam conditions are different evidence. Do not compare their percentages as if the attempts were identical.

Use this set to identify a next study action. Use broader preparation and realistic timed practice to examine coverage and endurance. CFP Board determines the official result; this page does not convert ten teaching questions into a predicted passing score or an official diagnostic.

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CFP practice questions with worked explanations

Choose how to practise

This page

Interactive sample tool

Printable CFP pack

Try 10 CFP teaching questions

Question 1. A household receives $7,500 in monthly take-home income and spends $6,300, including all required debt payments. How much is available each month for additional saving or debt repayment?

Question 2. A client chooses a reserve target of six months of essential spending. Essential spending is $3,200 per month, and $8,000 is already reserved. How much more is needed?

Question 3. A client is comfortable with large investment swings but needs the entire account for a home purchase in six months. Which distinction matters most?

Question 4. A client's stated survivor needs total $900,000. Existing life coverage is $300,000, and $150,000 of assets are earmarked for those needs. Ignoring taxes and discounting, what additional coverage fills the gap?

Question 5. A client invests $20,000 at a hypothetical fixed annual return of 5%, compounded annually. With no cash flows, taxes, or fees, what is the value after two years?

Question 6. Assume a fully usable $1,000 tax deduction saves tax at a 24% marginal rate. Compare that with a fully usable $1,000 nonrefundable credit. What are their respective tax savings?

Question 7. A retiree plans annual spending of $58,000 and expects $34,000 of reliable annual income. Under a simplified 4% initial-withdrawal assumption, what starting portfolio supports the remaining first-year gap?

Question 8. A client updates a will but leaves old beneficiary designations on retirement accounts. What should the planner do?

Question 9. A client refuses to sell a poorly fitting investment solely because its price is below the amount originally paid. Which bias is most directly illustrated?

Question 10. A new client asks which investment to buy before sharing financial goals, existing assets, or cash needs. What should the planner do first?

Turn an answer into a useful next step

Add an official full-length rehearsal

Use the result to choose the next lesson

Keep learning evidence separate from a pass prediction

Questions about this topic

Sources and editorial notes